This report provides a comprehensive overview of trends and developments in the UK's telecommunications market. The report analyses the fixed-line, mobile and broadband sectors.

The UK's telecom market remains one of the largest in Europe, characterised by fierce competition which has resulted in reduced pricing for end-users. Following some market consolidation in the mobile segment, there are four key players and a number of MVNOs.

Mobile broadband in coming years will place some additional pressure on the fixed-line broadband subscriber base as customers are tempted to migrate to 5G-enabled services.

The fixed-line broadband sector is characterised by the steady decline in DSL and the ongoing efforts among a good number of operators to expand the reach of fibre networks. This is being supported by government efforts to encourage the right economic environment facilitating the ambition to have the fully-fibred UK by 2033.

British Telecom is aiming to provide ultra-fast broadband services to some ten million premises by 2020, while Vodafone is also partnering with CityFibre to deliver an extensive 1Gb/s service to about five million premises by 2025.

The fixed-line voice segment is being similarly repositioned, with PSTN services making way for IP-delivered content. BT's independent wholesale unit Openreach plans to complete the switch to the fibre by 2025.

The mobile market has room for a growing number of low-cost MVNOs providing effective price and service competition for subscribers. The market has also been characterised by developments in advanced data services delivered over upgraded networks, the bundling of mobile as a quad-play service, and regulatory controls on charges and fees.

Mobile penetration is above the EU average, and in common with developments in many other European markets, subscriber growth has dipped in recent quarters as consumers respond to economic pressures and more generous pricing offers among operators which have negated some of the justifications for multiple SIM card ownership.

Auctions for spectrum in the 2.3GHz and 3.4GHz bands have made more bandwidth available for mobile broadband services, supported by regulatory moves which allow the refarming of 2G spectrum for 3G and 4G use. Spectrum will also be released in the 700MHz band during 2019, which spectrum is also being allocated for 5G. Operators continue to trial 5G technologies with a number of key vendor partners.

Key Developments

BT transfers 31,000 employees to Openreach Ltd;

BT and Huawei trial 3Tb/s channel over existing fibre;

Arctic cables to connect the UK to Japan;

Government to invest 1 billion of fibre infrastructure and 5G technologies launches 400 million investment aimed at connecting up to two million premises with a 1Gb/s FttP service by 2020;

Hyperoptic to deliver FttP to Brent borough;

Government publishes its Future Telecoms Infrastructure Review;

USO to guarantee minimum 10Mb/s service by 2020;

O2 trials Li-Fi technology;

Openreach to commercialise Dark Fibre Access product;

CityFibre partners with Vodafone to extend fibre;

BT developing G.fast technology;

Hyperoptic to extend fibre broadband to two million people across 50 cities;

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